Principles of Economics and Bangladesh Economy suggesstions, November, 2014

Banking Diploma Examination— November, 2014

JAIBB

PRINCIPLES OF ECONOMICS & BANGLADESH ECONOMY

[N.B. -Answer any five questions.]

1.

a) Define Economics

b) Economics is the science of wealth-Discuss

c) Economics is a science, which studies human behavior as a relationship between ends and scare means, which have alternative uses”- L. Robins. Explain the statements with criticism.

d) State and explain the definition of economics provided by Alfred Marshal.

e) Compare the definitions of Economics offered by Adam Smith and Lionel Robbins.

f) Show the relationship between:

1. Economics and Statistics

2. Economics and Political Science

3. Economics and Sociology

g) Differences between:

1. Positive Economics & Normative Economics.

2. Micro & Macro Economics.

h) Discuss the subject-matter of Economics.

             

2.

a) What is the Law of Demand?

b) Explain the Law of Demand with the help of a diagram.  

c) What is meant by the phrase "other things remaining the same" used in the Law?

d) Why does a demand curve usually slope downward to the right?

e) If demand increase, both equilibrium price and quantity increase. Again if supply rises, both equilibrium price and quantity decline.”-Explain the statement with diagram.

f) What is the price elasticity of demand? State the formula.

g) Show how the quantity demanded of a commodity responds to price changes when

(i) Demand is perfectly inelastic. (ii) Demand is perfectly elastic, and when (iii) elasticity of demand is equal to unity. Use diagrams for each of the cases.

h) Calculate the price elasticity of demand when the price per unit of a product falls from Taka 5 to Taka 4 and the quantity bought rises from 4 units to 5 units as a result.

3.

a) Define monopolistic competition.

b) State the features of monopolistic competition.

c) How does an imperfect market affect the interest of an average consumer?

d) How price is determined in monopolistic competition?

e) There is no Supply curve in monopoly-Explain.

4.

a) Distinguish between ‘balance of trade’ and ‘balances of payments’.

b) What measures should e take to correct the balances of payment deficits?

c) Explain the methods of calculating Gross Domestic Product?

d) What are the problems and limitations of calculating GDP?

e) Define: GDP, GNP and NNP

5.

a) What is opportunity Cost?

b) What is the implication of the opportunity cost curve being (i) convex: (ii) concave: and (iii) a Straight line?

c) Show in a diagram the position of ‘total cost’ ‘total fixed cost’ & ‘total variable cost’ curves.

d) Show in a diagram the relationship among ‘average fixed cost’ & ‘average variable cost’ & ‘average total cost’ of a firm in a short run.

6.

a) What is inflation?

b) What are the causes of inflation?

c) How can we control inflation?

d) What is money?

e) Discuss the functions of money.        

f) State and explain the components of money supply in Bangladesh.

7.

a) What is Government borrowing?

b) Why does Government borrow?

c) Discuss the domestic sources of government borrowing in Bangladesh and their likely effect on the economy.

d) What is deficit Budget?

e) What are the different methods of financing in deficit Budget?

f) Mention your arguments FOR and AGAINST deficit financing in Bangladesh.

g) What is Foreign Direct Investment?

h) Provide arguments for welcoming ‘Foreign Direct Investment’ in Bangladesh.

i) What’s the problem which faces by a country for welcoming Foreign Direct Investment?   

j) Discuss in what ways Bangladesh could attract more FDI in the country.

k) How does foreign direct investment (FDI) help accelerate a country's economic development?

8.

Write short notes on-

a) Inferior goods;

b) Fixed Cost ad Variable Cost

c) Returns to scale; -

d) Returns to scale;

e) Floating Exchange Rate

f) Cash Reserve Requirement (CRR);

g) Currency Depreciations;

h) Cost-Push Inflation;

i) Substitution effect of price change;

j) Gross national product at factor cost;

k) Gresham’s Law

l) Disguised Unemployment;

m) Terms of Trade

n) Quasi-rent;

o) Monopoly Business;

p) Basel-ii accord;

q) Law of Gresham;

r) Public Goods;

s) Giffen Goods;

t) Statutory Liquidity Requirement (SLR).